- Based on suggested literature students can use various IO-problems in so-called class room games (experiments in economic sciences) as a didactic element of a course.
- Students acquire the ability to relate model-theoretical results to real economic decisions.
- Students recognize that repeated decisions in real industrial economic problems converge to the results predicted by abstract theoretical models.
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- Students learn about typical decision-making situations in strategic management in the context of different scenarios (experiments).
- Students know about equilibria and optimal decisions in different industrial-economic scenarios [keywords: Cournot and Bertrand equilibrium, collusion, location decisions, decisions about product qualities, feedback mechanisms on markets, effects of company mergers and franchising models in vertical company structures, displacement strategies of companies].
- Students understand that management decisions have a significant influence on key business figures such as profit, turnover, market share and the probability of survival of companies.
- Students are familiar with the didactic requirements of economic experiments (so-called classroom games).
- Students know the basics of game theory.
Subject
The central element of the course is the organization and participation in so-called classroom games, which are prepared, organized and evaluated by the students. The students have to make strategic management decisions under experimental conditions in the context of various industrial economic problems. The economic decisions are compared with the theoretical forecasts of abstract economic models. The industrial economics problems include Cournot and Bertrand competition, collusive behaviour, decisions under asymmetric information, vertical firm integration, and location decisions. (The topics vary.)
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